The morning news. [volume] (Savannah, Ga.) 1887-1900, 1887-10-07
TURNED INTO THE POOL.
THE GEORGIA COMPANY TAKING
UP CENTRAL STOCK.

Three Thousand Shares Held by the
Banks on Margins Taken Possession
of by the Owners-The Syndicate's
Plans.
Some of the banks received a considera-
BILE addition to their cash yesterday-a little
over 100000 About 3 200 shares Of Cen
trail railroad stock thai were held by the
banks on margins were taken possession of
by the owners and sent to New York to be
put in the pool there of the Georgia Com
pany There are about 1000 more shares
held here by the banks which which will
shortly be forwarded to New York 1t is
also owned by the parties who are members
of the Georgia Company. Tho 100000
which will thus be released here ought to help
very materially toward making money in
this market easy.
GETTING INTO SHAPE.
The Georgia Company is rapidly getting
It's affairs into shape. As is well known it
is composed of gentlemen who hold 40,000
of the 5000 shares of Central railroad
stock. Ii includes among others Messrs.
lnman and Swami, the two BelmontS, the
two Lehmans, Mr. Rice, Hollins & Co,
KeSsler q Co., Alfred Sully, all of New
York, Denison of Clark, Denison & Co., of
Philadelphia, John c. Calhoun, of South
Carolina, Pat Calhoun, of Atlanta, and
Gen. Alexander and Mr.. A l.. Hartridge
of this city. Some Of the directors of the
Central, who had shares, for some reason
or other best known to themselves,
dropped out of the syndicate some weeks
ago, about the time that Mr.. lnman
dropped into it. 1t was not announced,
however, that he dropped in until they had
dropped out.
THE GEORGIA COMPANY.
1t looks as if the syndicate would make a
good thing out of their purchase. The basis
of the Georgia company is the 10000 shares
of Central stock and 800, 900 in cash, $40
for each share Of stock contributed by mem
bers of the syndicate. The company has
issued 81 900, 600 in per cent. bonds, and
these have been sold at Csc. 1t has also
issued S12, 000,000 in stock or three shares
for each share of Central. 1t is under
stood that none of this stock
will be sold for less than
$50 per share, and it may bring great deal
more, as the company intends to use its cash
and credit in constructing railroads, and in
other ways to make money. If the Central
continues to pay 3 per cent, after paying
the interest on the bonds there will be per
cent left to apply to the payment of divi-
dends on the Georgia Companys stock. and
that will be sufficient to make quite a show
ing for that stock
TO HOLD THE STOCK.
It is understood that q majority of the
| Georgia Company stock shall be retained by
the syndicate. To part with majority of
it would be to part with the control of the
Central Railroad and Steamship Com
panies.
If the plans of the syndicate work out as
expected the members of it will do very
well The stock of the Central cost them,
ON an average, about $l20. The cost to
some was much less. The $40 contributed
to the Georgia Company makes the cost per
share $130. For each share put into the
Georgia Company one bond and three shares
of stock are obtained. The bond has been
sold at sos, and assuming that
$50 per share will be obtained for the stock
the stock will net $40. Each share of Cen
trail stock that cost $50 will, therefore,
produce S1S5-a profit of So. That is
pretty good financiering is it not with stock
that was selling below 20 few months ago